Thailand Stock Exchange rules out cryptocurrencies on its platform
- Three basic requirements are needed for any digital asset to be listed on the SET crypto exchange.
- Cryptocurrencies are excluded from the exchange because of volatility and the risk of money laundering.
- The exchange said any listed token must be tied to an asset the users can find valuable.
Thailand’s stock exchange ‘SET’ is planning to roll out a digital asset trading platform but says the platform will not include cryptocurrencies.
According to the SET, crypto assets will not be listed in the stock exchange because such assets could facilitate money laundering and did not meet its product qualifications.
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The non-crypto digital tokens are expected to be listed in the second half of 2021, according to the announcement.
Three basic requirements to list digital assets
The Bangkok Post reported that the exchange outlined three basic requirements for any token to be listed on the exchange.
SET said one of the requirements is for the exchange to contribute to the economic activities in the country. The second requirement is that the token must support the environment and the society. Thirdly, the proposed token must be linked to an asset that investors can analyze on value.
SET has been collaborating with the Kasikom Business Technology Group (KBTG) on blockchain projects. The company has been given the responsibility of finding and screening digital products that have interests to register with the stock exchange.
Cryptocurrencies excluded due to money laundering risks
Kitti Sutthiatthasil, executive vice-president at SET, said that crypto assets like Bitcoin (BTC) don’t meet any of the laid out criteria. According to him, one of the reasons that ruled such assets out is the risk of money laundering. He said cryptocurrency, due to its decentralized nature, makes them not suitable to be listed on the exchange. Also, another major reason for their exclusion is their high volatility rate.
SET’s reputation could be harmed if people are caught laundering money of the SET digital asset platform, he reiterated. Although many Bitcoin traders in Thailand invest in Bitcoin (BTC), the SET exchange will not accommodate such token or other cryptocurrencies.
Bitkub ordered to shape up
In a related development, Bitkub, the largest crypto asset exchange in Thailand, has been asked by the Securities and Exchange Commission to shape up. This is coming after the exchange had several outages during the recent rally.